## Regulations and Impediments for Treatment and Beneficial Use of CBM Produced Water

John A. Veil Presented at 16 th Interna.onal Petroleum and Biofuels Environmental Conference Houston, TX November 3‐5, 2009 a component of 

### An Integrated Framework for Treatment and Management of Produced Water2 

## Topics for Discussion

 Regulatory requirements affec4ng produced water management  Regulatory requirements affec4ng beneficial reuse  Impediments/issues

### Scope of Project

 The RPSEA project coordinated by the Colorado School of Mines (CSM) is focused on beneficial reuse of water from coalbed methane (CBM) produc4on in the Rockies  The studied region includes por4ons of:

– Colorado

– Montana

– New Mexico

– Utah

– Wyoming  This presenta4on describes the regulatory requirements that govern produced water management and reuse.

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### Options for Managing CBM Water

 Discharge to surface water  Inject underground for disposal  Evaporate  Haul/pipe for offsite disposal  Beneficial reuse

– Agriculture

– Industrial use

– Domes4c use

– Other  Some of these ac4vi4es are subject to state and federal regula4ons

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### Overview of Regulatory Requirements Relating to Surface Discharge
 Na4onal Pollutant Discharge Elimina4on System (NPDES) permits are required for discharges to surface waters  Issued by state agencies  Contain numerical limits on selected pollutants  May require best management prac4ces or other opera4onal controls  Limits are based on technical feasibility of treatment and protec4on of water quality  There are currently no na4onal discharge standards for CBM water

– EPA is studying the CBM sector and will decide next year if na4onal effluent limita4ons guidelines are needed

– In the mean 4me, states can establish limits using best professional judgment 5

### Overview of Regulatory Requirements Relating to Underground Injection

 If CBM water is injected, it must be authorized by an Underground Injec4on Control (UIC) permit issued by the state or an EPA Region.  Class II wells are used for injec4ng produced water  If water is treated and injected into a shallow aquifer for reuse, a Class V well permit is required  Given the process used to produce CBM (extract water from the coal seam to reduce hydrosta4c pressure), injec4on of water back to the coal seam (comparable to enhanced recovery) is not prac4cal
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### Requirements for Other Water Management Options

 Some water management op4ons are generally approved without specific regulatory requirements

– Evapora4on

– Irriga4on

– Industrial use  Water managed by those op4ons typically must meet certain process quality requirements that ensure good opera4ons rather than mee4ng regulatory requirements  Example

– Use as cooling tower makeup water would not require any permits

– Owner of cooling tower would need to make sure the water was clean enough to meet the process specifica4ons

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### How Can Users Obtain Regulatory Information?
 The project team is building a RPSEA project website that will provide links to each of the states.

– Should be available some 4me in 2010  Regulatory informa4on format will be similar to the Regulatory Module on Argonne’s Produced Water Management Informa4on System (PWMIS) – see next page for example

– Iden4fy responsible agencies

– Provide contact informa4on

– Give bulleted outline of state regulatory requirements, permiced ac4vi4es, and prohibited ac4vi4es • contain hot links to the actual text of the regula4ons and to applica4ons, forms , etc.  Users can contact state agencies directly for clarifica4on 8

### Sample Content for Regulatory Information (1 of 3)

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### Sample Content for Regulatory Information (2 of 3)

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### Sample Content for Regulatory Information (3 of 3)

 Add a new sec4on (not currently part of PWMIS) that describes State regula4ons, laws, and policies regarding beneficial use of produced water

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### Impediments to Beneficial Reuse of CBM Water

 Feasibility Issues

– Availability of water in sufficient quan4ty and quality for a long enough period of 4me to jus4fy an investment • Need to account for historical swing in natural gas prices and the effect that has on produc4on

– Cost of reuse compared to disposal • How clean must water be before the reuse?

 Legal Concerns

– Gas producers have a fear of liability from an end user of the water

– Water rights laws are state‐specific and can be very complicated

– Regulatory requirements may be a moving target

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## Conclusions

 CBM produc4on generates a lot of water  The Rocky Mountain states have a need for addi4onal water resources  Beneficial reuse of the water is a desirable goal  Gas producers must follow exis4ng water management regula4ons and may be subject to addi4onal requirements in the future  There are some feasibility and legal barriers that impede beneficial reuse of the water  This project hopes to make progress in mi4ga4ng those barriers

## Contact John Veil Manager – Water Policy Program Argonne Na4onal Laboratory 202‐488‐2450 jveil@anl.gov An Integrated Framework for Treatment and Management of Produced Water